Abstract
We study intangible assets in a property rights framework with sequential production. Transaction-level trade and FDI data on Slovenian firms reveal that (i) sequential complementarity/substitutability of supplier investments influences the importance of intellectual property rights (IPR) for firm organization; (ii) the position of knowledge intensive inputs along the supply chain (upstream/downstream) dictates the effect of IPR protection on integration/outsourcing decisions; (iii) IPR and contracting institutions have heterogeneous effects on firm boundaries. Our findings conform with a property rights model in which IPR quality governs knowledge transmission along the value chain, which ultimately drives organizational choices through the supplier incentive structure.
Presenters
Alireza NaghaviProfessor, Department of Economics, University of Bologna, Bologna, Italy
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Organizational Intangibles and Tangible Value
KEYWORDS
Sequential production, Intellectual property rights, Intangible assets, Knowledge-intensity, Firm organization
